As reported in Senior Housing News, according to the latest data from the National Investment Center (NIC) for the Senior Housing Care Industry, "while not entirely recession "proof" the senior housing sector has proven recession resilient. In September, NIC executives said that while senior housing has not surged through the recession, it maintained growth and is attracting new capital to the market.
"In terms of investment returns over the three- and five-year period, senior housing has outperformed all other core industrial types [of housing]," said Chuck Harry, NIC director of research and analytics. "Income returns continue to outshine core commercial property types. This is the only sector for rents to not turn negative. They slowed down, but remained positive throughout the downturn. While not recession proof, [the sector is] truly recession resilient."
The senior housing sector "far outperformed" other commercial real estate property types in annual returns at 7.2% over five years, and 14.2% in a seven-year period, according to NIC's Investment Guide. That compares with 3.1% and 7.2%, respectively, for the National Price Index (NPI), in part due to lack of volatility